AEP Industries Inc. has reached a definitive
agreement to acquire substantially all of the assets and specified
liabilities of Webster Industries, a privately-held national
manufacturer and distributor of retail and institutional private
label food and trash bags, in a cash transaction valued at approximately
$28.4 million, subject to a post-closing working capital adjustment.
Webster has operations in Montgomery, Alabama and is an operating
division of Chelsea Industries, Inc.

Founded in 1957, Webster sold 93 million
pounds of product with recorded net sales of $145 million in
2010. Webster’s product lines include food contact products,
which consist of food storage and freezer bags with a resealable
zipper, bags with a slider close, fold top and twist tie food
storage and sandwich bags, and conventional trash bag products.

“This opportunity allows us to enter into
a new market with significant cross-selling potential,” said
Brendan Barba, chairman, president and chief executive officer
of the company. “The private-label market continues to thrive,
and with a stronger, more diversified portfolio of products,
we will be able to build on our success in the plastics industry
and create additional long-term value for our shareholders. We
expect to achieve significant cost savings, realized principally
from improved resin purchasing and other synergies throughout
the combined organization.”

The company plans to finance the transaction
through a combination of cash on hand and availability under
its revolving credit facility.